(a) The Agency shall issue a monitoring report summarizing its findings which will include, if applicable, questioned costs, disallowed costs, observations and recommendations.
(b) The Grantee shall provide information, supporting documentation, and a summary of actions the Grantee has taken or plans to take in response to the monitoring report. These materials must be received by the Agency no later than 21 days after the mailing date of the monitoring report.
(c) After evaluation of the Grantee's response, the Agency shall issue a final monitoring report. If disallowed costs remain, the final monitoring report will establish a debt against the Grantee for the disallowed amount.
(d) If findings are not resolved or debts are not paid, the Grantee may be subject to corrective action pursuant to Subchapter C of this chapter relating to Corrective Action, Subchapter D of this chapter relating to Deobligation of Grant Funds, or legal action.
(e) Fund for Veterans' Assistance grant funds shall not be used to reimburse the Agency for disallowed costs.

Source Note: The provisions of this §460.24 adopted to be effective June 8, 2011, 36 TexReg 3508